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Home My WebLink About6.3 AmendMuniCode2.28 . CITY CLERK File # O[lQ]5J[Q]-[g][Q] AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 17, 1998 PUBLIC HEARING Amendment of Dublin Municipal Code Chapter 2.28 Relating to Campaign Contribution Limitations (Report prepared by Elizabeth H Silver, City Attorney) SUBJECT: EXHffiITS ATTACHED: B. . C. RECOMMENDATION~) . 2) 3) ~ 4) 5) 6) FINANCIAL STATEMENT: None A. Draft Ordinance amending Chapter 2.28 of the Dublin Municipal Code relating to Campaign Contribution Limitations Annotated copy of Chapter 2.28 showing proposed changes Agenda Statement from February 3, 1998 Meeting Open Public Hearing Receive Staff Report Receive public connnent Close public hearing Deliberate Waive reading and introduce ordinance DESCRIPTION: At the February 3, 1998 Council meeting, the City Attorney presented a report that concluded that Dublin Municipal Code section 2.28, relating to campaign contribution limitations and expenditure limitations, was vulnerable to legal challenge as a result of the Federal District Court ruling invalidating Proposition 208. At that meeting, the Council directed staff to revise the current ordinance to provide a $300 limit on campaign contnbutions during an entire election cycle (two years) and to eliminate the voluntary expenditure limitations. The City Attorney has prepared a draft ordinance (Exhibit A). The draft ordinance would make several changes to the existing ordinance; the changes are noted on Exhibit B, which is an annotated copy ofthe current ordinance. 1. Findings and Purpose Section 2.28.010 would be amended to delete the reference to voluntary expenditure limitations. Definitions The current ordinance would be amended to add definitions of "election" and "with respect to an election" which were contained in Chapter 2.28 before it was amended in 1997. The effect ofthis amendment would be that no one could contribute more than $300 from the day after an election until the next election which is two years later except to repay debt. 2. . ------------...---------------..-------...------------......--------------------------------------------------------------...-----...------...-------... COPIES TO: ITEM NO. --M J 3. Dollar Limit on Contributions The draft ordinance would increase the dollar limit from $100, which is the amount allowed b~.' Proposition 208 found by the Court to be unreasonably low, to $300, the amount the City allowed prior to Proposition 208. (See Section 2.28.030.) In adopting the draft ordinance, the Council will be finding that $300 is a realistic limit on campaign contributions in Dublin. 4. Declaration re: Compliance The only change to Section 2.28.040 is to change the amount from $100 to $300. 5. Voluntary Expenditure CeiIinp Deleted The draft ordinance would repeal Section 2.28.050 which provided a voluntary ceiling on expenditures, consistent with Proposition 208. The Court found this provision to be unconstitutional. Until the ordinance is amended, the existing provisions of Chapter 2.28 are in effect. Proposition 208 prolnbits campaign contributions more than six months prior to the November 1998 election. The court prolnbited enforcement of this part of Proposition 208 as well. The proposed amendment to Chapter 2.28, eliminating the time restrictions, will become effective more than six months in advance of the November election (assuming introduction on February 17 and adoption on March 3). Candidates will thus be able to accept contributions once the amended ordinance becomes effective. Staff recommends that the Council deliberate, waive the reading and introduce the ordinance. . K2/G/2-17-98/as-$300.doc (EHS:bog) J,IWPD\MNRSW\114\OI\AGENDAll998lCAMPAlGN.210 . -.;?- /d~ :/ '- . ORDINANCE NO. - 98 AN ORDINANCE OF THE CITY OF Dublin AMENDING CHAPTER 2.28 OF THE DUBLIN MUNICIPAL CODE RELATING TO CAMPAIGN CONTRIBUTION LIMITATIONS FOR ELECTIONS The City Council of the City of Dublin does ordain as follows: SECTION 1. Section 2.28.010 Findings and Purpose Section 2.28.010 of the Dublin Municipal Code is amended to read as follows: <<Pursuant to the authority granted to the City Council in Government Code Section 81013 permitting the imposition of additional local requirements to the Political Reform Act of 1974, the City Council finds that it is in the public interest to place realistic and enforceable limits on the amounts which may be contributed to political campaigns in municipal elections." SECTION 2. Section 2.28.020 Definitions Section 2.28.020 of the Dublin Municipal Code is amended to read as follows: . "For the purpose of this chapter, definitions codified in the Political Reform Act, beginning at Government Code Section 82000, et seq., shall apply with the addition of the following: 'Election' means any municipal election, whether general or special, at which the offices ofCouncilmember and/or Mayor are to be filled. 'With respect to a single election' means: I. In the case of a contribution designated in writing by the contributor for a particular election, the election so designated, provided that a contribution designated in writing for a particular election may be made after the election and prior to June 30th following the election only to the extent such contribution does not exceed net debts outstanding from the election. 2. In the case of a contribution not designated in writing by the contributor for a particular election, the next election for the office after the contribution is made." SECTION 3. Section 2.28.030 Limitation on Contributions . Subsection A of Section 2.28.030 of the Dublin Municipal Code is amended to read as follows: "A. No person shall make any contribution or contributions to a candidate or committee which exceeds the cumulative amount ofthree hundred dollars ($300), nor shall any such contribution or contributions which exceed the cumulative amount of three hundred dollars . f:XU~RIT A ;z 4j'- ($300) be accepted by any candidate or committee from any person with respect to a single .' election. " SECTION 4. Section 2.28.040 Declaration re: Compliance Subsection A of Section 2.28.040 of the Dublin Municipal Code is amended to read as follows: "A. To ensure full compliance with this chapter, each candidate shall execute a declaration under penalty ofpeIjwy on a form provided by the City Clerk stating that such candidate did not receive any contnbution or contributions totaling more than three hundred dollars ($300) from any person with respect to an election." SECTION 5. Section 2.28.050 Repealed Section 2.28.050 of the Dublin Municipal Code, entitled ''Voluntary expenditure ceiling" is repealed. SECTION 6. Posting The City Clerk of the City of Dublin shall cause this Ordinance to be posted in at least three (3) public places in the City of Dublin in accordance with Section 36933 of the Government Code of the . State of California. PASSED, APPROVED AND ADOPTED by the City Council of the City of Dublin this ~ day of , 1998, by the following vote: AYES: NOES: ABSTAIN: ABSENT: Mayor ATTEST: City Clerk EHShg J:\WPD\MNRSW\114\OI\ORD\1998\CAMPAIGN_209 K2/G/2-17-98/ord-$300,doc . " . Chapter ;US CAMP AlGN CONTRIBU110NS Sections: 2.28..010 z..28.020 2.2&..030 FindingS and purpose. Definitio~. Limitations on contributions.. . Declaration re: . cOJDPUanc:e." ~olun~. expenditure ceiling: - . Viobtion-Penalty. ;2.2&.040 2.28.050 2.28.060 . 2.28.010 Fmdings :md plU'pose.. Pun;oant to the authority gr;mted to the City Council in ao'lcIIlIJ]C.D.t Code Section 81013 permitting the imposition of addition- allocal requirements to the'Political-Reform Act of 1974. the ~ Council finds that it is in the public intereSt to place ~c and enfo~lc limits OD. the 2ll1Ounts which may be contributed to political campaigns in municipal dcccioDS :md to ,n".t/ ~,:;~ . drt.::35 'te VQIUfl~,.;iy l;n'lit TP"ir eW"Q,.;;"":Vi..- COrd. 11-91 S 1 (part)) . 2.28.020 DefinitiODS. For the purpose of this chapter. defull- I nons codified in the Political Refonn Aat L be~g at GOye.rnroent Code Section ~ ,rh. +~€ f 8:WOO et seq- shall apply. (Ord.. 11-97 ~ 1 ~~lt~~~, (part)~ ~ ^ '\ v Jl ...A).} l.9(#..\I\~e..J . Cse. & OJr"lI 2..28.030 LilpitatioJIS on contributions. A. No _!Son shall r to any caI1di- d.aW for local d no candidate shall {Z.o.:.V l~c...:e accept from any e n, a c.ontribution or n-.300 contdbtdions ciling mo an one hun- :ll'r\-N" dred do ($100) for each .on in Lsie- c1.IiAfr 0 rJt ~tU'lc.e.. for f t1--/11.~ l.J.-lt-j e.,] ~.;. .. .'.1: ". .:;!.. ' -2, -~ :i ./ --J 2.28.010 _ . whi~ the ~~ .~mptiDg to be on ;-...1iI~)~n.ot.. ~~ ~.~~~. ~didatf:. ,.;- B~ .,"J.1le"prohibitions"Si:ated in subsection . .. .......: .. ..J;:.;......' \(.';..;. :.....- ;." . I .. . . . A oftbis section shall Dot 2lt'ply to eontribu.. ti<?%1S made or ~v~ in suppOrt of. or in opposition to. a ballot mcasme. Dor shall ... :I _"" .-.1 ..... sai~ proln'bitio~'~appiy" to contributions . ~ hia eandidaie tQ hiS'or h=r campaign. ". (0rii'1.~~9i'~ j"(p~))':'~';;' . -' _... ",' J ....... _ _~.. '. 'H..' ..". ." ._" f"'. ._.. : ,.#,'. . .....""(:: I. .,,:",' .. .,.,v 040.... " D"':':i;"~f.:' '... . ~. .....;.. ~_OD re: - ... .".: ',' ~inpllim~ . ...~,~ :-::~ ).. -., . A.... Tp..cnsnre full ctiinpliaD.ce with tl6 ch~" ~1i coUidi~ shall execUte a dec- ~on un~ ~ty. of perjmy OD a form provicied.?y the: City Clc.tk stating that mcb . c8Ddidate did 'n"ot receive any conoibutioI1 or contI1Dutio~:~; more than ~ 'f+.r.u. hundted dollars (~ from any person with respect to an election. B. The declaration reqtrlred by subsec- tion A of this section shall be filed with the City Oerk,with each pte-ele...~on statement filed pmsuanI to state law and with the semi-annual ~nts ICqOired to be filed pursuant to state law. COrd. 11-97 S 1 (part)) 31 (DI>blill 12.91) .. . '::t:." ::,.. . "\., . EXHIBIT B 2.28.050 f . ........ "'"r .'.r"';"~. ." .i ~ . . . " "~.?f~~~=~~~~~: ~f~'tbis .". ,1~':'T"" ~.... --,.' ,.p ........- ~..... . cil2pter ''is ~a niiSdeii;i~otp'iiDish3ble by a fiDe not to exccCd' five' hUndred doll3rs ($500) or im~nmeDt for a term not ex- . '1~';''' ...,. . .. ceeding six' (6) mOnthS, or by both such fine aIJd~O~L~",;'" , B:. :'Whet!Uioriiot'a violation"js ~er- teD.4 k~gCI1~ or de.IibeIate ~ the 'F5ence or ;u)Sen~. of good ~ih, ~ be cor;g~ cred ill applying the pc.Dalti~ of ~ chap.. ter. (C>rd. 11-97 9 1 (part)) '" - .. (t:>..bI;u 1:2.-911 ',f..':: ' .;' -' ,',:;{; :" '" ";.: 32 . ... . . ..' , , ...., ':,.. -. , . .. ~... ~ ,. ~ '. tjqff - . .." ". . . . . e Ie e c: --r"'" d --- -f) 2f CITY CLERK File # DrzaBJ[ZL]-~~ AGENDA STATEMENT CITY COUNCIL MEETING DATE: February 3,1998 SUBJECT: Campaign Contribution Ordinance and Proposition 208 (Report prepared by Elizabeth H Silver, City Attorney) EXHffiITS ATTACHED: Chapter 2.28 of the Dublin Municipal Code Relating to Campaign Contribution Limitations and Expenditures for Elections RECOMMENDA nON: "'/L Receive staff presentation \ 2. Provide direction to staff FINANCIAL STATEMENT: None DESCRIPTION: Existin2 Campai2n Contribution Expenditure Limitations Ordinance Chapter 2.28 of the Dublin Municipal Code provides limits on the amounts which may be contributed to political campaigns in municipal elections. No person may make and no candidate or committee may accept more than $100 from anyone person with respect to a single election. In addition, candidates have the option of accepting voluntary expenditure limits in the amount of $1 per resident. Finally, the current ordinance includes a ban on contributions more than six months in advance of an election and 90 days following an election to pay debt. Chapter 2.28 was amended in 1997 in response to the passage of Proposition 208, which imposed the $100 contribution limit, the pre-election ban, and voluntary expenditure limits. The amended Chapter 2.28 repealed the previously existing Chapter 2.28 which provided campaign limits higher than those permitted by Proposition 208. The prior ordinance provided that no person could make and no candidate or committee could accept more than $300 from anyone person with respect to a single election. The ordinance did not limit campaign expenditures. The only change made in 1997 that was not precipitated by Proposition 208 was a requirement that candidates report the name, address, and occupation of contributors for contributions received in excess of$25.00. The Council decided to delete that requirement from the ordinance to make it consistent with state law reporting requirements, which require that information to be disclosed for contributions over $99.00. ___.__._._.~_.._.._.._.._.._r........_._______.__rr_.._..-..._n__.__._."_.._.._".__._._-~._--_."~.&_._-""_.__.._"__.__.._..._.._.._.._...._.._.._.._.._rr_..._.._..._.._.._...._.._u_.._.._..._.._+__.._.._..__..... COPIES TO: 11 EXHIBIT C , Status of Proposition 208 6 5:(/;7 f - Several lawsuits were filed challenging the constitutionality of Proposition 208. Federal District Court Judge Lawrence Karlton in Sacramento held a trial on the validity of Proposition 208. On January 6, 1998,. Judge Karlton issued an injunction prohibiting the Fair Political Practices Commission from enforcing Proposition 208 in its entirety. He held that the contribution limits in the initiative were too low to permit candidates to campaign effectively, and that the expenditure limits were coercive and thus invalid.' Judge Karlton did not permanently rule on Proposition 208. Instead, he instructed the FPPC to ask the California Supreme Court to determine whether any other parts of the initiative could be separated from the unconstitutional portions and remain in effect. At this time, Proposition 208 is indefinitely on hold until the California Supreme Court rules on whether parts of the initiative may remain in effect. The FPPC has appealed Judge Karlton's ruling to the federal Court of Appeal. It is unlikely that a decision will be reached for many months. Impact of the RuIinlZ on Municipal Code Chapter 2.28 Judge Karlton based his ruling on the contribution limits on a factual question. He decided that, based on the evidence presented, the contribution limits in the initiative were too low. He did not hold that contnbution limits in general were unconstitutional; in fact, he reaffirmed that contribution limits are permissible. However, he did rule that the $100 limit for jurisdictions under 100,000 residents was unconstitutionally low. Given Judge Karlton's ruling, therefore, it is arguably unconstitutional for Dublin to have a limit as low as $100. Judge Karlton did rule that the voluntary expenditure limit scheme in Proposition 208, which is included in . Chapter 2.28, was unconstitutional. The voluntary expenditure scheme in Chapter 2.28 is identical to the procedure in Proposition 208 and thus also unconstitutional. It is possible that the Court of Appeal might overturn Judge Karlton's ruling, but it is unlikely. The ruling was accompanied by literally hundreds of factual findings in support ofhis conclusion. Also, the United States Supreme Court has generally not upheld constitutionally questionable campaign finance ordinances and struck down a Colorado statute as recently as 1996. To conclude, Judge Karlton's ruling invalidated the voluntary expenditure portions of Chapter 2.28 and called into question the $100 contribution limit imposed by Chapter 2.28. Recommendation Staff recommends that the Council provide direction to the staff to (1) prepare an ordinance to repeal the current provisions of Chapter 2.28 and reinstate Chapter 2.28, as it existed prior to Proposition 208, (a $300 limit on contributions with respect to a single election; no expenditure limits; reporting requirement for contributions in excess of$25); or (2) notify all candidates and potential candidates that the City will not enforce its ordinance pending resolution of the lawsuits challenging Proposition 208; (which would mean no contnbution limits) or (3) provide other direction as appropriate. K2/Glcc-mtgs/2-3-98/as-208.doc . -;2.- e Chapter 2.28 CAMPAIGN CONTRIBUTIONS Sections: 2.28.010 2.28.020 2.28.030 Findings and purpose. Definitions. Limitations on contributions. Declaration re: compliance. Voluntary expenditure ceiling. Violation-Penalty. 2.28.040 2.28.050 2.28.060 e. 2.28.010 Findings and purpose. Pursuant to the authority granted to the City Council in Government Code Section 81013 permitting the imposition of addition- allocal requirements to the Political Reform Act of 1974, the City Council finds that it is in the public interest to place realistic and enforceable limits on the amounts which may be contributed to political campaigns in municipal elections and to allow candi- dates to voluntarily limit their expenditures. (Ord. 11-97 ~ 1 (part)) 2.28.020 Definitions. For the purpose of this chapter, defmi- tions codified in the Political Reform Act, beginning at Government Code Section 82000 et seq. shall apply. (Ord. 11-97 ~ 1 (part)) e 2.28.030 Limitations on contributions. A. No person shall make to any candi- date for local office, and no candidate shall accept from any person, a contribution or contributions totaling more than one hun- dred dollars ($100) for each election in 1&O~ % 2.28.010 which the candidate is attempting to be .on the ballot, or is a write-in candidate. B. The prohibitions stated in subsection A of this section shall not apply to contribu- tions made or received in support of, or in opposition to, a ballot measure, nor shall said prohibitions apply to contributions made by a candidate to his or her campaign. (Ord. 11-97 ~ 1 (part)) 2.28.040 Declaration re: compliance. A. To ensure full compliance with this chapter, each candidate shall execute a dec- laration under penalty of peIjury on a form provided by the City Clerk stating that such candidate did not receive any contribution or contributions totaling more than one hundred dollars ($100) from any person with respect to an election. B. The declaration required by subsec- tion A of this section shall be filed with the City Clerk with each pre-election statement filed pursuant to state law and with the semi-annual statements required to be filed pursuant to state law. (Ord. 11-97 ~ 1 (part)) 2.28.050 Voluntary expenditure ceiling. A. A voluntary expenditure ceiling is established for candidates for local office of one dollar ($1) per resident (as of January 1 of the election year, based on State De- partment of Finance figures) for each elec- tion in which the candidate is attempting to be on the ballot or is a write-in candidate. B. Each candidate shall file a statement of acceptance or rejection of the voluntary expenditure ceiling with the City Clerk before accepting any contributions. C. If a candidate accepts the voluntary 31 (Dublin 12.97) 2.28.050 expenditure ceiling, the contribution limit specified in Section 2.28.030(A) shall be raised to two hundred fifty dollars ($250). (Ord. 11-97 ~ 1 (part)) 2.28.060 Violation-Penalty. A. Violation of any provision of this chapter is a misdemeanor punishable by a fine not to exceed five hundred dollars ($500) or imprisonment for a term not ex- ceeding six (6) months, or by both such fine and imprisonment B. Whether or not a violation is inadver- tent, negligent, or deliberate in the presence or absence of good faith, shall be consid- ered in applying the penalties of this chap- ter. (Ord. 11-97 ~ 1 (part)) (Dublin 12-97) ~ czIr~ e e., e 32